A historic cryptocurrency milestone has been reached, as Bitcoin surged to an unprecedented peak. The world’s largest cryptocurrency soared to a staggering $69,202, surpassing its previous all-time high set in November 2021 at $68,999.99.

Investors have been flooding funds into US spot exchange-traded crypto products, driven by the anticipation of global interest rate reductions. Furthermore, last month saw a significant development as Bitcoin received approval for integration into more mainstream investment avenues in the United States.

Nathan McCauley, CEO and co-founder of the crypto platform Anchorage Digital, remarked on this pivotal moment, stating, “The bitcoin all-time high marks a turning point for crypto. Traditional institutions were once sitting out; today, they are here in full force as the principal drivers of the crypto bull market.”

In early January, the US Securities and Exchange Commission reluctantly sanctioned the trading of the first bitcoin exchange-traded funds (ETFs). These ETFs, which track the price of assets like gold, bonds, or cryptocurrencies, offer investors an avenue to invest without directly purchasing the asset itself.

However, despite this regulatory approval, the SEC maintained a cautious stance towards cryptocurrencies, emphasizing that it “did not approve or endorse bitcoin” in its decision.

As Bitcoin approaches its upcoming “halving” event in April, which curtails the rate of new coin issuance and occurs roughly every four years, experts point to the anticipation of limited supply coupled with growing investor interest as factors propelling the price surge.

Laith Khalaf, Head of Investment Analysis at AJ Bell, highlighted the significance of Bitcoin’s rise and the introduction of spot ETFs in the US, underscoring their role in integrating cryptocurrencies into the mainstream financial ecosystem and potentially facilitating a global adoption.

However, Khalaf cautioned that Bitcoin’s value is largely influenced by sentiment, stating, “If you buy some, you’re relying on someone paying more than you further down the line to turn a profit.”

With the supply of Bitcoin capped at 21 million, of which 19 million have already been mined, the cryptocurrency continues to captivate investors despite concerns over its volatility and limited real-world applications.

Nevertheless, amidst the influx of funds into ETFs, the prospect of constrained Bitcoin supply, and potential US interest rate adjustments, some companies are diversifying their corporate portfolios by embracing cryptocurrencies.